overlooked re-rate, page-22

Thanks Jo, but so far the share price isn't moving in the direction I expect it to. I'm happy to hold for the 9%+ div yield while I wait though.

By my rough calculations the large seller still has around 2.2m shares to offload. They bought 20m in a placement at 12c last year. At the time this was a 50% premium to the market which was around 8c and was what triggered my interest in the stock.

With a bit of luck a buyer can be found to take the rest in one go similar to the 3m trade you mentioned.

By my valuation fair value today is around 25c with a 12mth target of 32c.

Valuation EPS Div PER Div Yield
2010 $0.25 0.023 0.015 10.9 6%
2011 $0.32 0.029 0.0175 11.1 5.5%

This assumes a 25% increase in earning per share for 2011.